Hedge Fund Lonestar Capital to Shut Down – Sources

Rob Copeland was first to report that hedge-fund firm Lonestar Capital Management LLC plans to close it’s doors and return most of its $1 billion portfolio to investors by mid-2015, according sources. The firm’s main fund was down more than 2% this year through the end of October. Founder Jerome Simon plans to manage his own family office.

The story as it appeared on Dow Jones:
Nov. 13, 2014, 2:36 PM EST: Hedge Fund Lonestar Capital to Shut Down – Sources

The San Francisco hedge-fund firm Lonestar Capital Management LLC will shut down in one of the larger hedge-fund liquidations this year, according to people familiar with the firm.

Based in San Francisco, Lonestar manages about $1 billion, including funds from deep-pocketed investors like David Einhorn’s Greenlight Capital Inc., the people said.

In a letter to investors, founder Jerome Simon called it a “bittersweet moment” and said he was disappointed that recently he could not “claim the very highest ground of perennial outperformance,” according to a person with knowledge of the letter. Its main fund was down more than 2% this year through the end of October, compared with a 1.6% gain for its peer event-driven hedge funds tracked by HFR Inc.

Mr. Simon will manage his own fortune in a so-called family office once the shutdown is complete, in mid 2015.

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